Save 16k in a year by doing nothing*

dopester

IveSeenTheLight wrote: »

Let me first say, STR is gambelling on future price drops.
They stopped this sort of practice in the shares market for a reason.
But what if they don't drop, what if they rise?

Incidently who are you proposing will buy the STR's if the recommendation from some is not to buy as the market is going to drop?

People are still free to sell shares in publicly listed companies they own. There is no ban on people selling shares they own.

Earlier this year I sold my shares at a price I was happy with in listed company. I did so because I thought they'd just about reached their peak, was happy with the gain in value.

Now if the shares go up in value, I've not sold out at maximum return, but I don't care in this instance. Happy with the return I got. If they go on to fall in value, those holding the shares lose out on what they could have previously sold at.

News for you. Those buying, or not selling property, are gambling just as much with values, as those selling to rent in my opinion. You are the market too! You're taking your own risk, or "gambling" as you put it, with asset values! Geez.

What you're really trying to ply it off as is short selling, but STR is more akin to selling your own shares - not buying options to profit on falls in value.

And even that short selling ban was a stupid political reaction with practically no basis in reality for doing so. The same knee-jerk reactions saw it outlawed in the US stockmarket crash on 1929+.

It was lifted in modern times after the ban, but there is talk of further restrictions coming in. Utterly ridiculous imo.

The same medieval mentality that outlawed short-selling when it was known as "forestalling" will be back at work attacking the structure of free auction markets when the slump becomes unmistakable.

The search for scapegoats is in many respects silly. But it unintentionally makes a point that you should take to heart. When the news is bad and apt to get worse you cannot draw your bearings about the economy or the market from channels of mass communication.

Can you imagine a major newspaper (much less the leaders of a country) saying that stocks fell because objective conditions no longer supported their further rise? Has it ever been recognised politically that a market has topped out? Or that an economy needed to go through a painful slump to facilitate a transition and shake out dead wood. In every case of which we know, politicians have continued to pretend that all was well long after events provided impressive evidence to the contrary.

Generali

dopester wrote: »

And even that short selling ban was a stupid political reaction with practically no basis in reality for doing so. The same knee-jerk reactions saw it outlawed in the US stockmarket crash on 1929+.

It was lifted in modern times after the ban, but there is talk of further restrictions coming in. Utterly ridiculous imo.

I'd ban naked shorting (that is short selling without having borrowed stock first) as I don't think it's conducive to orderly markets. Trades in Euroclear have been known to fail for (literally) years as people have shorted naked.

If you sell something you should be obliged to come up with what you have sold. If I buy shares for delivery in 3 days time I expect to have a counterparty risk for 3 or possibly 4 days if something goes wrong, not for many years. From memory, the oldest failing trade I have seen was about 3 years old.

Beyond that there is no need to ban covered shorting. There is no credible evidence that I am aware of that it creates volatility, in fact by increasing liquidity it should decrease volatility. Volatility is often a symptom of a lack of liquidity IMHO.

chucky

IveSeenTheLight wrote: »

Let me first say, STR is gambelling on future price drops.
They stopped this sort of practice in the shares market for a reason.
But what if they don't drop, what if they rise?

Incidently who are you proposing will buy the STR's if the recommendation from some is not to buy as the market is going to drop?

Finally, higher LTV products were removed from the market as prices fell previously.
What makes ou think the 10% dposit mortgages will be still available if property drops to £144k from £160k
10% of £160k (£16k) is less than 20% of £144k (£28.8k)

what these people forget is that a 1% movement in mortgage rates on a 5 year fix is probably somewhere noth of 5% of the purchase price of your property.

you're gambling with two variables - house prices and mortgage rates (not BoE rates).

even people who that 'knew' the market like that Merryn Somerset Webb woman got stung.

you don't get these things right by planning - you get it by lucky timing.

StormyBaby28

Out of interest - why is Aberdeen not included (says in small print)?!

IveSeenTheLight

StormyBaby28 wrote: »

Out of interest - why is Aberdeen not included (says in small print)?!

Because he has a facination with the place.

des_cartes

chucky wrote: »

and so would those who own property and think house prices will fall.

if they're going to fall sell now and re-buy in x amount of months and make yourself £16k profit.

I think that many homeowners have made so much on their property over the past 10 years that losing it all over the next 10 is probably of little interest to them. Personally I prefer gaining 16k+ every year through not investing in property to working.

IveSeenTheLight

des_cartes wrote: »

Personally I prefer gaining 16k+ every year through not investing in property to working.

Hod do you gain £16k+ each year through not investing in property to working?
Did you gain £16k in 2009?
Will you gain £16k in 2010?
If so you have a minimum £32k towards a deposit

Gorgeous_George

If you expect to move home in the next year or two/three, you would probably be better off selling now. I'm not and I won't.

GG

sabretoothtigger

StormyBaby28 wrote: »

Out of interest - why is Aberdeen not included (says in small print)?!

Scottish market has been doing ok I think. I know someone in Scotland recently sold at a profit and moved, it did involve a long chain though

carolt

Oh yes it will.